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Friday, December 27, 2013

Weekly recap: sell puts on BRKB and V

My
schedule is going to get better for blogging. However, I am toying
with the idea of weekly updates, instead of reporting each trade in
near real time. This week I held my nose and sold puts on V Visa and
BRKB Berkshire Hathway. Yes, the stock market is extended on the
upside, but what is a person to do? Keep waiting? Hedge? I choose to
hold my nose and buy a little.

Again for the new readers, selling puts means I am bullish on a stock. Selling out of the money puts is a low risk, low reward, high probability strategy. Again, do not be excited by the high percentage of winners. Those are the approximate odds of profit going in. The person buying the puts is hoping for a 5-to-1 or 10-to-1 payoff, with a small chance of getting paid. I am taking the opposite side, selling the put with a 80% to 90% of winning, but getting paid very little for taking that side of the trade.

About Me

I now have two blogs, a piano blog
(link1)
and a stock market blog (link2).

Piano intro: I am a whistle and Irish flute player that started playing piano keyboard in March 2012. Mostly I compose and play my original tunes on my Casio PX-150 digital piano, which I bought in January 2013. I started in 2012 with a Yamaha NP11 keyboard.

Intro for trading blog: I am an individual investor posting a public trading diary. I am not here to give advice. I post my trades and thoughts for public consideration. Mostly it helps to keep myself straight. As of 2012, my favored trades are selling naked puts and strangles.